Supply chain – The COVID-19 pandemic has definitely had its impact influence on the world. health and Economic indicators have been compromised and all industries have been completely touched within one way or some other. Among the industries in which this was clearly obvious will be the farming as well as food business.
In 2019, the Dutch extension as well as food sector contributed 6.4 % to the yucky domestic product (CBS, 2020). Based on the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion in 2020. The hospitality business lost 41.5 % of its turnover as show by ProcurementNation, while at exactly the same time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy and food security as a lot of stakeholders are impacted. Even though it was apparent to majority of individuals that there was a great impact at the conclusion of this chain (e.g., hoarding in grocery stores, restaurants closing) and also at the beginning of this chain (e.g., harvested potatoes not searching for customers), there are many actors in the source chain for that the impact is less clear. It is therefore imperative that you determine how properly the food supply chain as a whole is armed to cope with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen University and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID 19 pandemic all over the food resources chain. They based their examination on interviews with about thirty Dutch source chain actors.
Need within retail up, that is found food service down It’s evident and well known that need in the foodservice stations went down on account of the closure of restaurants, amongst others. In certain cases, sales for suppliers in the food service industry thus fell to about twenty % of the first volume. As a complication, demand in the list channels went up and remained at a quality of aproximatelly 10-20 % greater than before the crisis started.
Products that had to come through abroad had their own problems. With the shift in demand from foodservice to retail, the requirement for packaging improved considerably, More tin, cup and plastic material was needed for use in buyer packaging. As more of this product packaging material concluded up in consumers’ houses as opposed to in joints, the cardboard recycling function got disrupted too, causing shortages.
The shifts in demand have had a significant effect on output activities. In some cases, this even meant the full stop of production (e.g. inside the duck farming industry, which emerged to a standstill on account of demand fall-out on the foodservice sector). In other instances, a big section of the personnel contracted corona (e.g. in the meat processing industry), leading to a closure of equipment.
Supply chain – Distribution activities were also affected. The start of the Corona crisis of China triggered the flow of sea canisters to slow down fairly shortly in 2020. This resulted in limited transport electrical capacity throughout the very first weeks of the problems, and costs that are high for container transport as a consequence. Truck travel experienced various problems. At first, there were uncertainties about how transport will be managed at borders, which in the long run were not as rigid as feared. The thing that was problematic in many instances, nonetheless, was the accessibility of drivers.
The reaction to COVID 19 – deliver chain resilience The supply chain resilience analysis held by Prof. de Colleagues as well as Leeuw, was based on the overview of the core things of supply chain resilience:
Using this particular framework for the assessment of the interviews, the findings show that few organizations were well prepared for the corona crisis and in fact mostly applied responsive practices. The most notable source chain lessons were:
Figure one. Eight best methods for meals supply chain resilience
To begin with, the need to develop the supply chain for agility and flexibility. This appears especially complicated for smaller sized companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations oftentimes do not have the capacity to do it.
Next, it was discovered that much more interest was needed on spreading danger as well as aiming for risk reduction inside the supply chain. For the future, meaning far more attention should be given to the way businesses count on specific countries, customers, and suppliers.
Third, attention is necessary for explicit prioritization as well as intelligent rationing strategies in cases where need can’t be met. Explicit prioritization is actually necessary to continue to satisfy market expectations but additionally to increase market shares wherein competitors miss options. This particular challenge isn’t new, although it has additionally been underexposed in this specific problems and was usually not a part of preparatory pursuits.
Fourthly, the corona issues shows you us that the economic impact of a crisis also is determined by the way cooperation in the chain is set up. It is often unclear exactly how further costs (and benefits) are distributed in a chain, if at all.
Last but not least, relative to other purposeful departments, the operations and supply chain works are actually in the driving accommodate during a crisis. Product development and advertising and marketing activities have to go hand in hand with supply chain activities. Whether or not the corona pandemic will structurally replace the basic considerations between production and logistics on the one hand and marketing on the other hand, the future must tell.
How is the Dutch food supply chain coping during the corona crisis?